Discover the Truth about Universal and Term Life Insurance Guide

Universal and term life insurance guide

Discover the Truth about Universal and Term Life Insurance Guide

In this trying time, being employed is not enough security for the future. The quality of life and the economy are very different in the past than today. Now, you will find a lot of people struggling to build their own small business or doing some part-time jobs. Most of these self-employed people do not have any company benefits. This is the reason why independent business owners and workers should decide to get the benefits that they need to secure the future of their families. 

Independent workers are getting the most affordable medical or dental coverage that they can get. Trying to acquire these services are helpful, but there is a vital coverage that is being overlooked by many life insurance. Now is the right time for you to understand how this life plan can help you build a safety net for the future of your family in case of early death.

To help you with learning how life insurance is designed to work and also some major tips on how to go about purchasing some, take a look at the this guide on the different life insurance types.  Hopefully, it can help with any questions you have about the different life insurance types.

The Real Importance of Life Insurance

If you are bombarded with lots of monthly fees such as house rent, car loan, transportation, and food expenses, it makes insurance fall at the very list of your priorities. Many people are not properly educated about this coverage and some believe that it is an expensive added financial burden. The truth is that getting one is the best way to secure the future in the case of early death. It can offer financial security knowing that your family will not suffer from financial losses. 

The amount that the bereaved family can get depends on the package that the insured acquired. The money from coverage can pay off debt, funeral expenses, medical bills, and can even use for a college fund. 

Universal Life Insurance Coverage

This type is also known as a Permanent type that can offer cash value and can provide security even while you are still alive. The beauty of Universal Life Insurance is the fact that it can grow tax deferred inside of the policy and all of the savings can be borrowed by the insured in case of a sudden financial burden. However, it is important to take note that you will incur a penalty to cancel it until it reaches the full term. Also, the value of the policy decreases as you get older as the cost of insurance goes higher. 

What is Term Life Insurance?

The coverage depends on the yearly salary as well as the age of the applicant with a fixed term. If you are already in your 30’s, then you may apply for a 20-year coverage plan. The younger you are, the more affordable your monthly premium will be. 

Another good option is to get an add-on service called Return of Premium. This will reimburse all paid premiums during the policy until its expiration. Today, term coverage remains the most reasonably priced type of life plan. It requires a very simple process and chooses whether to undergo a medical examination or opt for a no medical exam. 

Useful Tips on finding the right Life Insurance to Buy

The following are very useful tips for all applicants whether you want Universal or popular Term coverage. 

  • If you are working for a company, it is important to ask your employer about the insurance that the company offers. You may consider getting a supplemental policy along with what the company offers. Most company insurance plan has very limited coverage. Getting add-ons is the best decision to secure your future in case you suffer from job loss or untimely death.
  • It is important to select coverage that is at least five times your annual salary.
  • As you look for the best insurer, it is important to choose and get a quotation from at least three reliable and experienced insurance providers to do a comparison. Consider insurers with higher insurance rating. 
  • Always check your policy coverage in cases of major life changes that may affect your financial stability and security.